UPDATE: EDF Readies To Sell Remaining Constellation Shares-Filing

French state-controlled energy group Electricite de France SA (EDF.FR) has taken regulatory steps to sell its 14.6 million remaining shares in U.S. partner Constellation Energy Group Inc. (CEG), according to a Constellation filing with the U.S. Securities and Exchange Commission.

EDF could sell its stake gradually through several transactions, including sales on the market, at a market or negotiated price, according to the Constellation filing, which was submitted late Monday.

EDF currently has a 7.3% stake in Constellation, the filing said.

An EDF spokeswoman said the French energy giant hasn't decided definitely to sell the shares, but that the regulatory filing was necessary to give it the power to do so.

"No decision to sell the Constellation stake has been taken yet," an EDF spokeswoman told Dow Jones Newswires.

"EDF confirms it has followed the U.S. stock market's regulatory process to be able to sell all or part of its stake in Constellation Energy, at market conditions and when it wishes to, which it couldn't do following the previous December 2008 agreements," EDF said in a statement.

In October EDF and Constellation agreed to end a joint venture to develop nuclear power plants together after the relationship soured.

Under the terms of the agreement, EDF said it would transfer 3.85 million Constellation shares to the U.S. company and relinquish its seat on the Constellation board. Once the transfer is completed, EDF's stake will be cut to 6.7% from 8.4%. The agreement also freed EDF from the binding clause forbidding it to sell its remaining stake.

-By Marion Issard and Angeline Benoit, Dow Jones Newswires; +33 (0)1 40 17 17 40; marion.issard@dowjones.com

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